Enterprise Products 2025 Q1 Earnings Revenue Up 4.5% Despite EPS Decline
Thursday, May 8, 2025 7:48 am ET
66min read Enterprise Products (EPD) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The total revenue of Enterprise Products increased by 4.5% to $15.42 billion in 2025 Q1, up from $14.76 billion in 2024 Q1. The company's earnings per share (EPS) declined by 3.0% to $0.64 in 2025 Q1 from $0.66 in 2024 Q1. Meanwhile, net income declined to $1.41 billion, down 5.2% from $1.48 billion reported in 2024 Q1. Enterprise Products expects organic growth capital investments in the range of $4.0 billion to $4.5 billion for 2025, with sustaining capital expenditures anticipated to total approximately $525 million.
Revenue
Enterprise Products reported a revenue increase to $15.42 billion for Q1 2025, up from $14.76 billion in Q1 2024. The NGL Pipelines & Services segment contributed $5.40 billion, while sales of NGLs and related products accounted for $4.65 billion. Midstream services generated $749 million. Crude Oil Pipelines & Services brought in $5.12 billion, with sales of crude oil at $4.83 billion and midstream services at $296 million. Natural Gas Pipelines & Services registered $1.22 billion in revenue, including $785 million from natural gas sales and $436 million from midstream services. Petrochemical & Refined Products Services reported $3.67 billion, with $3.33 billion from sales and $349 million from midstream services.
Earnings/Net Income
Enterprise Products' EPS decreased by 3.0% to $0.64 in Q1 2025 from $0.66 in Q1 2024, and net income fell by 5.2% to $1.41 billion from $1.48 billion. The EPS decline indicates challenging market conditions.
Post-Earnings Price Action Review
In the past five years, investing in Enterprise Products shares following a quarter with revenue growth and holding for 30 days has yielded moderate returns, albeit with substantial volatility and risk. This strategy has delivered a compound annual growth rate (CAGR) of 2.02%, resulting in a total return of 10.46%. However, the strategy's Sharpe ratio remained low at 0.21, reflecting limited risk-adjusted returns. The maximum drawdown reached -15.52%, and the volatility was 9.55%, underscoring the strategy's vulnerability to market downturns. As such, this highlights the importance of diligent risk management for investors considering this approach.
CEO Commentary
“During the first quarter of 2025, Enterprise continued to benefit from Permian-driven volume growth and consistent domestic and international energy demand pull across our midstream infrastructure system,” said A. J. “Jim” Teague, Co-CEO of Enterprise. “We reported record inlet natural gas processing volumes of 7.7 billion cubic feet per day and gross operating margin growth in our NGL and Natural Gas Pipeline & Services segments substantially offset lower earnings in our Petrochemical & Refined Products Services segment. Distributable cash flow for the quarter increased to $2.0 billion, enabling us to retain $842 million to reinvest in growth. We have $6 billion of major organic growth projects scheduled to be completed in 2025.”
Guidance
Enterprise Products expects organic growth capital investments in the range of $4.0 billion to $4.5 billion for 2025. Sustaining capital expenditures are anticipated to total approximately $525 million. For the first quarter of 2025, the company reported revenue of $15.4 billion and earnings per share of $0.64, with distributable cash flow coverage of 1.7 times the distribution declared.
Additional News
In recent developments, Enterprise Products Partners L.P. announced enhancements to its buyback program, repurchasing approximately $60 million of its common units in the open market during the first quarter of 2025. This move represents about 60% utilization of its $2.0 billion authorized buyback program. Additionally, Enterprise declared a quarterly cash distribution of $0.535 per unit, a 3.9% increase over the previous year's distribution for the same period. The distribution is scheduled for payment on May 14, 2025, to unitholders of record as of April 30, 2025. Furthermore, the company continues to expand its infrastructure, focusing on major growth projects expected to be completed in 2025, including facilities in the Permian Basin and enhancements at the Houston Ship Channel.
Revenue
Enterprise Products reported a revenue increase to $15.42 billion for Q1 2025, up from $14.76 billion in Q1 2024. The NGL Pipelines & Services segment contributed $5.40 billion, while sales of NGLs and related products accounted for $4.65 billion. Midstream services generated $749 million. Crude Oil Pipelines & Services brought in $5.12 billion, with sales of crude oil at $4.83 billion and midstream services at $296 million. Natural Gas Pipelines & Services registered $1.22 billion in revenue, including $785 million from natural gas sales and $436 million from midstream services. Petrochemical & Refined Products Services reported $3.67 billion, with $3.33 billion from sales and $349 million from midstream services.
Earnings/Net Income
Enterprise Products' EPS decreased by 3.0% to $0.64 in Q1 2025 from $0.66 in Q1 2024, and net income fell by 5.2% to $1.41 billion from $1.48 billion. The EPS decline indicates challenging market conditions.
Post-Earnings Price Action Review
In the past five years, investing in Enterprise Products shares following a quarter with revenue growth and holding for 30 days has yielded moderate returns, albeit with substantial volatility and risk. This strategy has delivered a compound annual growth rate (CAGR) of 2.02%, resulting in a total return of 10.46%. However, the strategy's Sharpe ratio remained low at 0.21, reflecting limited risk-adjusted returns. The maximum drawdown reached -15.52%, and the volatility was 9.55%, underscoring the strategy's vulnerability to market downturns. As such, this highlights the importance of diligent risk management for investors considering this approach.
CEO Commentary
“During the first quarter of 2025, Enterprise continued to benefit from Permian-driven volume growth and consistent domestic and international energy demand pull across our midstream infrastructure system,” said A. J. “Jim” Teague, Co-CEO of Enterprise. “We reported record inlet natural gas processing volumes of 7.7 billion cubic feet per day and gross operating margin growth in our NGL and Natural Gas Pipeline & Services segments substantially offset lower earnings in our Petrochemical & Refined Products Services segment. Distributable cash flow for the quarter increased to $2.0 billion, enabling us to retain $842 million to reinvest in growth. We have $6 billion of major organic growth projects scheduled to be completed in 2025.”
Guidance
Enterprise Products expects organic growth capital investments in the range of $4.0 billion to $4.5 billion for 2025. Sustaining capital expenditures are anticipated to total approximately $525 million. For the first quarter of 2025, the company reported revenue of $15.4 billion and earnings per share of $0.64, with distributable cash flow coverage of 1.7 times the distribution declared.
Additional News
In recent developments, Enterprise Products Partners L.P. announced enhancements to its buyback program, repurchasing approximately $60 million of its common units in the open market during the first quarter of 2025. This move represents about 60% utilization of its $2.0 billion authorized buyback program. Additionally, Enterprise declared a quarterly cash distribution of $0.535 per unit, a 3.9% increase over the previous year's distribution for the same period. The distribution is scheduled for payment on May 14, 2025, to unitholders of record as of April 30, 2025. Furthermore, the company continues to expand its infrastructure, focusing on major growth projects expected to be completed in 2025, including facilities in the Permian Basin and enhancements at the Houston Ship Channel.
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